Changes to Land Tax in South Australia

Changes to Land Tax in South Australia come into effect on 30 June 2020. The changes include lower tax rates, new aggregation provisions, surcharge rates for property held in a trust and grouping provisions for related companies.

Revenue SA are in the process of sending letters to all South Australian land owners requesting they verify their landholding details. They are requesting land owners provide this information on a new Online Portal by the date indicated on the letter.

What to do:

  1. If you own the property in your own name or in joint names – login and confirm the information they hold is correct.
    • Add any landholdings that are not shown
    • Remove any landholdings that are incorrect
  2. If you hold any of your properties in a discretionary or unit trust – we strongly recommend you contact our office to determine the best of course of action. For property owned by a trust prior to 16 October 2019 the trustee can nominate a beneficiary to be assessed on the property for land tax purposes rather than paying new trust surcharge rates. Once a beneficiary is nominated this can only happen once i.e. they can only be removed if you change your mind or circumstances and cannot be replaced. This means then that it can be an extremely important decision and could have long term financial ramifications.
  3. If you hold the property as trustee of a self-managed super fund – login and ensure they correctly have the property being held by the trustee on behalf of the Fund. Supporting documentation will have to be provided including the Super Fund Trust Deed.
  4. If the property is owned by a Company in its own capacity – as well as confirming the details are correct you will need to ensure that any related Companies have been added.

We suggest that should you have any queries regarding this process you contact our office for assistance on 08 8379 9501 for Linden Park or 08 8389 8077 for Woodside.

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